Trade Archive

Since coming to power in 2012, Chinese President Xi Jinping has exhibited a more forceful and direct style of governance than his predecessor. That has included an unprecedented domestic anti-corruption campaign, a renewed push at corporate sector reform and a more strident posture in many aspects of foreign policy. Some foreign commentators have interpreted these moves as an attempt to recentralize political power and even re-establish the “cult of personality” around political leaders that prevailed in China for much of the 20th century. An alternative interpretation is that Xi’s government has acknowledged fundamental problems within the Chinese political economy and […]

Earlier this month, China and South Korea reached a free trade agreement (FTA). In an email interview, Tony Nash, global vice president of Delta Economics, discussed the implications of the China-South Korea FTA. WPR: How comprehensive is the FTA with China compared to other high-profile FTAs South Korea has signed recently, and what explains any differences? Tony Nash: China and South Korea have studied and discussed this agreement for over a decade. The concept of the FTA is quite comprehensive, with more than 90 percent of goods covered as well as interesting modalities around online purchases and government procurement, which […]

Chinese investment and engagement now touches almost every aspect of Africa’s economy, including infrastructure, transport and logistics, trade, manufacture, agriculture, telecommunications and, of course, resource extraction. Because of the vastness of this engagement, commentators frequently fall back on catchall concepts, including an assumption that Africa is essentially passive in this relationship. The reality is much more complicated. Instead of simply imposing Chinese approaches on African realities, Chinese actors frequently try to attain their goals by partially adapting to specific African systems, with varying degrees of success. This article provides examples of this process by looking at China’s relationships with three […]

Autumn has been a difficult season for Mexican President Enrique Pena Nieto. Public furor has erupted into sustained and sometimes violent protests over the disappearance of 43 students in the rural southwestern state of Guerrero. Long one of Mexico’s poorest, most crime-ridden and isolated states, Guerrero had not been a priority for Pena Nieto’s administration, which has focused tirelessly on promoting the image of a modern and efficient Mexico to foreign investors. But as Guerrero’s longstanding economic and security problems became headline news across the world in the past month, that crafted image of a Mexico open for business after […]

Last week, Mongolia’s parliament appointed Chimed Saikhanbileg prime minister, two weeks after Norov Altankhuyag lost a no-confidence vote. In an email interview, Julian Dierkes, associate professor at the University of British Columbia, discussed Mongolian politics. WPR: What factors explain the recent no-confidence vote against former Prime Minister Norov Altankhuyag? Julian Dierkes: Surprisingly, Norov Altankhuyag was the longest-serving prime minister from the Democratic Party (DP). However, during the two and a half years that he was in office, Mongolia came to face an economic crisis that was largely government-made through strict foreign investment regulation and poor fiscal decisions. Altankhuyag did not […]

In the months after Mexican President Enrique Pena Nieto took office almost two years ago, he impressed even the skeptics with his dynamism, tackling the seemingly immovable forces that had been blocking his country’s progress. For a time it seemed as if the new administration was about to usher in Mexico’s long-awaited revolution, one that vowed to replace poverty and hopelessness with a sense of equality and a measure of social justice, even if he was crafting that transformation through legislation rather than Molotov cocktails. Now, however, that impression has been shattered. Outraged Mexicans have been throwing real Molotov cocktails […]

Whenever a U.S. president’s party experiences major losses during a midterm congressional election, there is always pressure to fire members of his team. In this particular cycle, pundits have urged President Barack Obama to consider replacing his national security adviser, Susan Rice, and Secretary of Defense Chuck Hagel, among others, as part of an effort to change course and find a new direction for his last two years in office. But staffing questions do not lie at the heart of the Obama administration’s problems. Rather, the administration has fallen short in its ability to define U.S. strategic priorities and to […]

After 12 years of divisive negotiations toward Economic Partnership Agreements (EPAs), the East African Community (EAC) last month became the latest African region to agree to a bilateral trade deal with the European Union. Concluding the talks was not easy, and sticking points among stakeholders remain, particularly around key African exports like Kenya’s horticultural products. The final deal has far-reaching consequences for East Africa’s economic development—not all of them good, as alternatives to such economic liberalization pacts, which critics contend favor the EU, emerge. Following the Cotonou Agreement in 2000 between the EU and African, Caribbean and Pacific (ACP) states, […]

Mexico’s recent decision to cancel a high-speed rail contract with the China Railway Construction Company (CRCC) is the latest example of the unsettled relationship between two of the largest emerging economies. In an email interview, Matt Ferchen, associate professor at Tsinghua University in Beijing and resident scholar at the Carnegie-Tsinghua Center for Global Policy, discussed China’s economic ties with Mexico. WPR: How have Mexico’s economic relations with China developed in recent years, particularly since China joined the World Trade Organization in 2001? Matt Ferchen: The takeoff in China-Latin America commercial and diplomatic relations began just about a decade ago in […]

Inside the United States, supporters of President Barack Obama have all sorts of explanations for the defeat handed the Democratic Party in last week’s midterm elections, which not only increased the Republican majority in the House of Representatives but also gave the GOP control of the Senate. Democrats’ failure to mobilize their traditional voters to turn out at the polls; accusations of voter-suppression techniques, which disproportionally impact those more likely to cast ballots for the Democratic Party; and the Republicans’ successful efforts at playing up anxieties about the economy, Ebola and the so-called Islamic State (IS) have all been put […]

In a bid to protect its own interests in the Arctic, and wary of NATO’s growing attention to the region, Russia is set to reactivate former Soviet-era bases around the North Pole. But the Kremlin would do well to monitor the actions in the Arctic of its occasional partner and possible future rival, China, rather than those of its trans-Atlantic adversary. With global warming melting ice and making northern sea routes more passable, both Arctic and non-Arctic nations are competing for access to the mineral, hydrocarbon and fishing resources estimated to lie under the North Pole. The race is on, […]

Next week, China will host 20 heads of state at the Asia Pacific Economic Cooperation (APEC) leaders’ meeting in Beijing, the biggest international event held in China since President Xi Jinping took power in 2012. In addition to advancing some of APEC’s standard agenda items from previous years, China is expected to use the summit as a platform to push for several regional integration initiatives of its own. While these proposals do have economic benefits for other Asian nations, their progress may be undermined by differences among APEC members, principally the United States and China, over how to promote trade […]

Nepal will host the 18th summit of the South Asian Association for Regional Cooperation (SAARC) later this month. In an email interview, Rajan Bhattarai, member of the Nepalese Constituent Assembly with the Communist Party of Nepal (Unified Marxist Leninist), discussed Nepal’s relations with its neighbors. WPR: How extensive are Nepal’s diplomatic and trade ties with other countries in South Asia, and in what areas? Rajan Bhattarai: Nepal is one of the oldest countries in South Asia and it was the first country in the region to establish diplomatic relations with the United Kingdom in 1934, well before any other countries […]